Damages from bitcoinxt are at least $1 billion now, and that's a huge deal since bitcoin only has about $3 billion total market cap.
The Bitcoin communities response has thus far been weak and disorganized. Bitcoin foundation is silent, bitcoin core team is silent. Someone needs to organize a real response to protect bitcoin from xt and other external threats, or bitcoin won't survive.
Response Paragraph 1: I honestly believe that Gavin does think he is doing the right thing, and I think he is aware that some of the sideline code that went in was designed to make the Big Money Pulling the Strings happy (Governments, Fiat Banks, Billion Dollar Investors etc) and I think he feels trapped. Mike came from Google. Enough said. That whole headfake "don't be evil" slogan always gives me a chuckle. He's doing what he is doing with eyes wide open - BUT FROM HIS PERSPECTIVE he thinks he is saving bitcoin. In a way he may even be right. From an economic standpoint they are DEFINITELY doing the right thing. A bitcoin xt will be more easily accepted by the powers that be, and that will take it closer to Huge Mainstream acceptance, and that will ultimately cause the value to go places you can say the words to - but honestly can't fathom.
Response Paragraph 3: I think that so very much is going on behind the scenes it is amazing. The majority of the power that will decide what ultimately is going to happen lies in plush offices, fancy offices, wearing suits, making deals over golf, or having a bite to eat at a fancy club. It's done in the presence of big investor money, regulators, bankers, and others attending back room meetings at hotels, trade shows, conferences etc. And they are making those rounds, and those meetings are happening. But those are meetings that end with a handshake, the nod of a head, or actual contracts being signed and money and promises being exchanged, contacts being made etc. It's happening FAST as the Old Money / Old Power gets up to speed. But I do agree that Core Dev and You and everyone else here needs to organize a defense if you want bitcoin to survive - because XT will happen. I personally would like to see an underground version of bitcoin. But unless a magic compromise happens - XT will get its mass target.